Army of Bots Used to Pump Cryptocurrency Prices, Report Finds
A recent report from the Network Contagion Research Institute (NCRI) reveals that an army of Twitter bots was responsible for pumping the prices of several cryptocurrencies. These bots were allegedly used to boost the price of coins traded by insiders at Alameda Research, the hedge fund associated with FTX, the former crypto empire of Sam Bankman-Fried.
Key Points:
– Following promotional tweets from the official FTX account, the activity surrounding 18 different cryptocurrencies grew significantly inauthentic over time.
– The study did not directly link FTX or Alameda as the operators of the bot accounts, but the researchers noted the suspicious pattern of account creations and bot-like activities.
– Some of the tokens that saw a substantial increase in social chatter and fake tweets include BOBA, GALA, IMX, RNDR, and SPELL.
– The report suggests that this orchestrated effort aimed to artificially manipulate market sentiment and trading behavior surrounding these tokens.
– It’s important to note that FTX has recently faced allegations of mismanagement and failure to honor withdrawal requests, revealing significant financial issues.
Hot Take:
This report highlights the potential for manipulation within the cryptocurrency market. With the use of Twitter bots to pump prices, it becomes even more crucial for investors to conduct thorough research and due diligence before making any investment decisions. The crypto industry needs increased transparency and regulation to protect investors from such fraudulent activities.